EUGENE WATER & ELECTRIC BOARD WORK SESSION EWEB BOARD ROOM 500 EAST 4 TH AVENUE MARCH 16, :30 P.M.

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1 EUGENE WATER & ELECTRIC BOARD WORK SESSION EWEB BOARD ROOM 500 EAST 4 TH AVENUE MARCH 16, :30 P.M. Commissioners Present: Rich Cunningham, Vice President; Ron Farmer, Bob Cassidy, Joann Ernst. Board Members Absent: John Brown, President. s Present: General Manager Randy Berggren, Debra Smith, Sheila Crawford, Lance Robertson, Jim Wiley, Clay Norris, Tom Buckhouse, Jeannine Parisi, Joe Harwood, Jennifer Joule, Patty Boyle, John Yanov, Edward Yan, Garilyn Johnston, Brad Taylor, Megan Capper, Felicity Fahy, Dick Varner, Karl Morgenstern, Eric Hiaasen, Dave Koski, Bill Welch, Ken Beeson, Mike McCann, Lisa McLaughlin, Georgia Friedt, Catrin van Donkelaar, Gary Lentsch, Wendi Schultz-Kerns, and Judy Chase of the EWEB staff; Lynn Taylor, City of Eugene minutes recorder. Vice President Cunningham convened the work session of the Eugene Water & Electric Board (EWEB). Energy Policy Discussion Clay Norris, Director of the Power Resources Division, recalled the previous discussion on energy resource stewardship and that staff had intended to come back with more specificity in the work plan and a concept for how to engage the public in the effort. He said they wanted to confirm that their planning work was consistent with board direction. He provided a power point presentation on the Energy Stewardship Policy. He reviewed excerpts from current policies that were relevant to energy stewardship. He stated that they had taken the classic approach of the three-legged stool, the legs of which were the economic impacts, the social impacts, and the environmental impacts of any given policy. The intent of the process was to move toward a future policy or guidance that would integrate what they had seen in terms of the planning documents and would build an overarching stewardship policy that would provide guidance to this and future boards and staff. In response to a question from Commissioner Farmer, Director of the Employee, Customer, & Community Services Division Debra Smith said they recognized they would still be doing conventional resource planning. She stated that they were considering 2010 almost as a prep year, providing the opportunity to develop a high level policy with tactical work going on in Mr. Norris area to develop a tool that could be used by staff in resource development. Commissioner Ernst said it was good for staff to take the opportunity to look at a policy to help guide decisions for what the resource plan would look like. She thought they could then drill down the Integrated Energy Resource Portfolio more.

2 Work Session March 16, 2010 Page 2 Mr. Norris stated that in looking at the projected load versus current resources, the utility did not have a need for more resources in the next several years. In response to a question from Commissioner Cassidy, Ms. Smith clarified that they were discussing a new governance policy and that the policies that the Board had queued up for discussion were still going to be brought forward at future meetings. She said the new policy would be more reflective of the higher level policies that the Board had indicated an interest in forming. Ms. Smith related that it had taken staff some time to figure out what to support the Board in doing. She said the item before them was a discussion on a real stewardship policy, a policy that would foster sustainable decision-making by both staff and the Board. She stated that the present conversation was focused on how they should develop the tool, in looking forward to the key decisions that lay on the horizon. She stressed that stewardship and sustainability were not policies but, rather, were guidelines for making policies. General Manager Randy Berggren highlighted the three-legged stool model as it related to EWEB. He said the economic leg was the strongest because they had done the most work on that aspect. He felt EWEB was getting better at the environmental aspect; EWEB had a more mature set of ways or tools to assess those things. He considered the social leg to be the weakest in the context of EWEB s work thus far. He agreed that it was being driven by public input to a certain extent. Mr. Norris proposed a timeline, noting that the Board could choose to modify it. Commissioner Cassidy asked how often the visioning part of the toolbox would be evaluated. Mr. Norris replied that as with other board policies, the suggested policy could be reviewed at any time at the Board s discretion. Commissioner Farmer commented that the real challenge lay in whether the policies were implemented and how the results were measured. He suggested that they figure out what the measurements were and determine whether they were closing that gap or not. He thought the Board should agree what the measurements would be and check to determine if they were being achieved on a regular basis. Ms. Smith said staff thought there would be a way to connect this work with the GRI work and this would allow them to provide a plan along with some modeling of what the impact of it would be. Commissioner Farmer said the evaluation of the measurements should drive policy change. Ms. Smith said in the past the Board had been very involved in resource planning. She related that staff was not sure that the way they had engaged the Board and the community had been the best use of time in past generation planning because of the highly technical and analytical nature of the information involved. She stated that one notion that had been brought

3 Work Session March 16, 2010 Page 3 forward was an executive limitations policy, such as one that would direct staff not to pursue power resources that utilized coal as an energy source, as opposed to a more prescriptive policy. General Manager Randy Berggren predicted that the Board would see tactical decisions in the next ten years that they would have to hold policy discussions on as they arose. He cited wind power as an example of a resource for which all of the ramifications were not readily apparent at this point. He thought it possible that staff would bring forward a different view of managing resources and demand and the technology and tools that went along with that at some point in the future. Commissioner Ernst agreed that EWEB staff and commissioners would be facing big decisions about where and how energy would be generated and where the water would come from in the next 15 years. She supported having an overall stewardship policy, which would be a working tool with measurements associated with it. She thought they could bring in the GRI sustainability model to help measure what was happening and what decisions they were making. She said they could have executive limitations policies that would start a boundary of where staff and the General Manager could go. She felt that as EWEB started to need more power, they should give themselves as many options as possible. Jeannine Parisi, Community and Local Government Outreach Coordinator, said the Board would have a decision to make on what level they would want to engage the public in this policy work and what kind of process they would employ in this public engagement. She related that staff anticipated that community interest would be a little on the lower end for most people. She suggested several options for public input tools, such as using basic surveys, polling, or publicizing a meeting at which the Board would be discussing the item and inviting the public to attend and participate. She thought there were ways to work within the framework of consulting with the public at natural points at which there was something for them to provide feedback that would be meaningful to the Board. Commissioner Ernst agreed that the energy policy did not need to be a focal point for community input, but could be combined with other community outreach. Commissioner Farmer wanted to find out what the community really thought and not just what a few people who showed up to testify would say. He said only a narrow group of people tended to show up to give testimony on energy policy. Ms. Parisi agreed that this was the challenge given that there was not an advocacy group that dealt with this particular issue. She remarked that they would have to seek a way to cast the net widely. Commissioner Farmer observed that it was challenging to take the pulse on what 150,000 people thought about an issue. Commissioner Ernst suggested utilizing an online survey as a tool. Ms. Parisi agreed, adding that another tool would be to piggyback on other public events. In response to a question from Commissioner Cassidy, Ms. Parisi said the first step would be to ascertain whether the level of public engagement that she was recommending would fit the Board s expectation. She said once she heard from the Board on this they could talk about

4 Work Session March 16, 2010 Page 4 refining the process. She stated that one piece of the drafting and testing phase could include using two existing groups that were already up and running, the internal Sustainability Action Team made up of a broad cross-section of staff, and a group that would be convened to assist on the next steps in the GRI report. The latter would be made up of seven people who were doing sustainability work in the community including representatives of the city, the University of Oregon, Lane Community College, green businesses, the Neighborhood Leadership Council, and others. Vice President Cunningham was pleased with the composition of the policy team. Commissioner Farmer commented that there really was no three-legged stool because the social, economic, and environmental aspects of any issue were intertwined. Vice President Cunningham ascertained that there was general board consensus to support the direction that staff was taking on energy policy and the recommended public engagement process. Vice President Cunningham adjourned the work session at 6:29 p.m. Assistant Secretary President

5 EUGENE WATER & ELECTRIC BOARD REGULAR BOARD MEETING EWEB BOARD ROOM 500 EAST 4 TH AVENUE MARCH 16, :30 P.M. Commissioners Present: Rich Cunningham, Vice President; Ron Farmer, Bob Cassidy, Joann Ernst. Board Members Absent: John Brown, President. s Present: General Manager Randy Berggren, Debra Smith, Sheila Crawford, Lance Robertson, Jim Wiley, Clay Norris, Tom Buckhouse, Jeannine Parisi, Joe Harwood, Jennifer Joule, Patty Boyle, John Yanov, Edward Yan, Garilyn Johnston, Brad Taylor, Megan Capper, Felicity Fahy, Dick Varner, Karl Morgenstern, Eric Hiaasen, Dave Koski, Bill Welch, Ken Beeson, Mike McCann, Lisa McLaughlin, Georgia Friedt, Catrin van Donkelaar, Gary Lentsch, Wendi Schultz-Kerns, and Judy Chase of the EWEB staff; Lynn Taylor, City of Eugene minutes recorder. Vice President Cunningham convened the Regular Meeting of the Eugene Water & Electric Board (EWEB) at 6:35 p.m. AGENDA CHECK There were no changes to the agenda. PUBLIC INPUT Vice President Cunningham opened the floor for public testimony and noted that people could provide testimony on the rate increase at this time if they so chose. Robert Tallman, ratepayer, stated that the country was in a recession and unemployment was high. He said EWEB should be more like a private company and make cuts instead of increasing rates. He asserted that the turnover rate for EWEB employees was two percent and employee retention should not drive salaries. He alleged that EWEB salaries and wages were way above the private sector. He declared that EWEB was a great place to work with good health benefits and pensions. He thought the Board should ask EWEB to make cuts in the budget. He provided written comments to the Board. Max Liebreich, ratepayer, explained that he owned a housing complex for senior citizens. He had to pay utility rates, where were increasing in Lane County, and asked how he was supposed to keep the rents down for his tenants. He felt that the poor public was being hit hard and it seemed that rates just kept getting increased. Vice President Cunningham closed the public comment period and opened the floor for comments.

6 Regular Board Meeting March 16, 2010 Page 2 Commissioner Farmer asked Mr. Liebreich if his building had only a single meter. Mr. Liebreich responded that during a winter storm in Chicago, senior citizens in a building had chosen to turn off their heat rather than pay heating bills and some had died as a result. Since then, he had made it a policy to pay the utility bills so that his tenants would not choose to turn it off. He said there were 43 meters in his apartment building. He noted that he was reimbursed for some of the cost through rents and through Lane County Housing. CONSENT CALENDAR CONTRACTS 1. Altec Industries, Inc. Purchase of Two Digger Derricks for EWEB Fleet Corporate Services Division, $570, Environmental Solutions LLC Ecological Services Related to the Implementation of the Roosevelt Wetland Mitigation, Compensatory Mitigation, and Restoration Plans Employee, Customer, & Community Services Division, $150, ERMCO, c/o Hees Enterprises Periodic Purchase of Single Phase Padmounted Transformers (as needed to replenish stock) Electric Division, $885, GDS Associates, Inc. Services Related to EWEB s Compliance with NERC Top Standards Electric Division, $18,890, total contract $84, Good Company Greenhouse Gas Analysis of EWEB s Operations Employee, Customer, & Community Services Division, $43, Lawson Environmental Engineering Engineering Design and Training Services for Oil Containment Substation Work Electric Division, $150, Pennington Crossarm Company Periodic Purchase of Douglas Fir Crossarms (as needed to replenish stock) Electric Division, $187, Portland Energy Conservation, Inc. CFL Program Marketing and Field Work in EWEB s Service Area Power Resources Division, $66,000, total contract $709, Scelzi Enterprises, Inc. Purchase of a Service Body for EWEB s Fleet of Utility Trucks Corporate Services Division, $135, SelecTemp, Inc. Temporary Staffing for EWEB s Fiscal Services Department Corporate Services Division, $54, Verb Marketing Water Management Services Marketing and Public Relations Services Employee, Customer & Community Services Division, $8,000, total contract $43, West Yost Associates Evaluation Services to Repair the Exposed Willamette River Pipeline Crossing Water Division, $89,000. Commissioner Ernst, seconded by Commissioner Farmer, moved to approve the Consent Calendar. The motion passed unanimously, 4:0. ITEMS REMOVED FROM THE CONSENT CALENDAR There were no items removed from the Consent Calendar.

7 Regular Board Meeting March 16, 2010 Page 3 ITEMS FROM BOARD MEMBERS Commissioner Cassidy noted that commissioners were receiving copies of public comments but did not receive copies of staff responses to the correspondence. General Manager Randy Berggren replied that staff could provide information on what responses had been made. Commissioner Ernst complimented the Fleet Manager for approaching the Oregon Toxics Alliance for the Do Not Idle campaign, in order to see how that could reduce emissions and save on fuel. Commissioner Farmer reported that he had attended the Board of Trustees meeting for the Northwest Public Power Association (NWPPA) in Coeur d Alene, Idaho. He said there were not a lot of meaty issues on the table; the board had spent much time wordsmithing policies and procedures. Vice President Cunningham noted for the record that he had attended the McKenzie Watershed Council meeting held in the previous week. He related that they had voted on one item, an endorsement of a ballot initiative to keep lottery funds intact that currently go to river issues. In response to a question from Vice President Cunningham, General Manager Randy Berggren stated that the agreement with the Seneca biomass facility had been signed and all issues had been resolved. CORRESPONDENCE General Manager Randy Berggren highlighted the following items of correspondence included in board packets: Karl Morgenstern, Drinking Water Source Protection Coordinator, provided a memorandum to the Board on an acquisition opportunity for protection of critical riparian resources and the creation of a demonstration farm in an effort to promote drinking water source protection goals. Ken Beeson, Roosevelt Project Coordinator, submitted a status report on the project. The McKenzie River Guides had sent EWEB a letter expressing concern about the temporary fish canal shutdown. The Board was provided copies of the letter and a response submitted by Catrin van Donkelaar, Generation Manager. A memorandum was included in Board packets that outlined an action plan to evaluate the benefits of administering the programs inhouse. The Board packets included some notes from customers. Vice President Cunningham reminded the Board of the March 23 Strategic Planning Session.

8 Regular Board Meeting March 16, 2010 Page 4 BOARD AGENDAS General Manager Randy Berggren provided the Board Agenda Report dated March 16, He stated that the April 6 meeting would include a one-hour executive session for his last General Manager performance evaluation. STILLWATER SCIENCES CARMEN-SMITH IMPLEMENTATION ENVIRONMENTAL CONSULTANT CONTRACT Mike McCann, Hydro License Implementation Project Manager, provided a brief overview of the information contained in the memorandum on the contract, dated March 9, He stated that Stillwater Sciences had been providing consulting work since He said the new contract was for assistance during implementation in order to continue working with the same people and accessing their existing knowledge of the Carmen-Smith relicensing project. Commissioner Cassidy, seconded by Commissioner Ernst, moved to approve a new contract with Stillwater Sciences for Environmental Services for the Carmen-Smith License Implementation. The motion passed unanimously, 4:0. PORTLAND GENERAL ELECTRIC STONE CREEK OPERATIONS & MANAGEMENT AGREEMENT Catrin van Donkelaar explained that Portland Gas & Electric (PGE) had been providing operation and management support since the Stone Creek Hydroelectric Project had started up in the late 1990s and had done a great job. She asked that the Board approve a renewal of the contract for ten years. Commissioner Farmer noted that he had supported this item before. He asked how staff knew that they were getting a fair market price for the work. Ms. van Donkelaar stated that the salaries for PGE staff were described in exhibits one and three. She felt the employees were receiving fair market salaries and rates and the amount they were charging for materials was reasonable. She said they assumed that they would use about ten percent of their labor to conduct the daily inspections, which seemed reasonable to her. Jim Wiley, Director of the Electric Services Division, stated that PGE submitted the information required by the Federal Energy Regulation Commission (FERC) on time. Commissioner Ernst asked if there was an alternative provider for this service. Ms. van Donkelaar responded that it would be difficult to find someone who could do the work because of the remote location and who could compete at the price PGE charged for the service. Commissioner Ernst asked how staff knew PGE was maintaining the project properly. Ms. van Donkelaar replied that EWEB staff inspected the facility and met with PGE and worked with them on preventive maintenance.

9 Regular Board Meeting March 16, 2010 Page 5 Commissioner Farmer, seconded by Commissioner Cassidy, moved to approve the renewal of the ten-year contract with Pacific Gas & Electric for the operations and maintenance of the Stone Creek Hydroelectric Project. The motion passed unanimously, 4:0. PROPOSED 2010 SPRING ELECTRIC RATE INCREASE John Yanov, Senior Finance/Rates Analyst, reviewed the proposed electric rate adjustment with power points, hard copies of which were provided to everyone present. He stated that this was the same presentation that had been provided at the last meeting. He conveyed staff s recommendation for approval. Commissioner Ernst asked how the increases in the basic service charges and delivery charges compared. Mr. Yanov replied that the increase brought these rates into parity according to the Cost of Service Analysis (COSA). Commissioner Ernst asked if it was a 1.9 percent rate increase. Patty Boyle, Fiscal Services Supervisor, confirmed that it was a 1.9 percent increase overall for all classes. She said each class had a specific rate increase split by three components of the bill and this component was held constant. Commissioner Cassidy said the increases had been explained well but it did not seem that the public was getting the message on why the changes were needed. Ms. Boyle replied that the opportunity to develop a larger communication plan would be in the budget process. General Manager Randy Berggren added that because of the Board interest in doing so, staff had tried to make a point in the budget process about the revenue requirement and rate actions that the budget portends. He said they did so in order so that if there was public comment relative to the approval of the budget for the next year, it was preceding the actual rate action. He underscored that they were doing more outreach and to be much clearer about the rate implications of the budget that they worked on in November and December with the Board. Ms. Boyle noted that the amount of public response was proportionate to the size of the rate increase. Commissioner Cassidy asserted that the local weekly opinion paper had a wider readership than the daily newspaper and suggested that they include rate increase information in it. Joe Harwood, External Communications Coordinator, stated that it had been EWEB s practice to advertise public hearings in the county s newspaper of record, which was the Register Guard. He said since October, because readership of the daily newspaper had been decreasing, staff had been using new social media, i.e. Twitter and Facebook. He related that they had begun to get a pretty good following using those media among younger people. In response to a question from Commissioner Farmer, Mr. Harwood stated that a bill insert was planned for April or May regarding the rate increase. Commissioner Farmer said the insert should explain why the increase was necessary. He averred that the key was how well they messaged what they had been trying to do within the utility to mitigate the rate increase. He thought that a good bill insert that showed the work staff

10 Regular Board Meeting March 16, 2010 Page 6 had gone through to save $2 million in the previous year would go a long way toward fostering an acceptance of the current rate increase. He observed that there was a disconnect in the minds of the ratepayers sometimes who thought that a reduction in salaries would make a real difference in the budget given that the majority of the cost was attributable to the cost of power. In response to a question from Commissioner Farmer, Mr. Yanov stated that Contract C was with the University of Oregon and Contract D was with the Eugene Density Fiberboard facility. PROPOSED 2010 SPRING WATER RATE INCREASE Garilyn Johnston, Senior Finance/Rate Analyst, presented the 2010 Water Rate Proposal with PowerPoints, hard copies of which were provided to those present. This presentation had also been made at the previous meeting. Commissioner Cassidy asked when the increase in cost to pump the water would be factored in. Ms. Johnston replied that this was considered in the budget process. She said there was no need to change the elevation charges now, but an increase could be needed for the next year. General Manager Randy Berggren suggested that staff provide a backgrounder that delineated the elevation charges at a future date. SECOND PUBLIC HEARING ON 2010 PROPOSED ELECTRRIC AND WATER RATE ADJUSTMENTS Vice President Cunningham opened the public hearing. There was no one present who wished to provide testimony at this time and he closed the public hearing. ELECTRIC RATE INCREASE ACTION Commissioner Cassidy, seconded by Commissioner Farmer, moved to approve the electric rate increase as proposed. The motion passed unanimously, 4:0. WATER RATE INCREASE ACTION Commissioner Cassidy, seconded by Commissioner Ernst, moved to approve the water rate increase as proposed. The motion passed unanimously, 4:0. Vice President Cunningham adjourned the Regular Board Meeting at 7:25 p.m. Assistant Secretary President

11 EWEB Board Consent Calendar Request For Contract Awards, Renewals, and Increases The Board is being asked to approve a new contract with A.B. Utility Contractors, Inc. for concrete removal and replacement services. Backgrounder (if yes, See backgrounder information ) No Board Meeting Date: May 4, 2010 Project Name/Contract#: Concrete Removal/Replacement Project Contact: Todd Simmons Ext Purchasing Contact: Quentin Furrow Ext Contract Amount: Original Contract Amount: $500,000 Additional $ Previously Approved: $ Invoices over last approval: $ Percentage over last approval: % Amount this Request: Resulting Cumulative Total: $500,000 (Approx $100,000 per year) $500,000 (Estimated 5 year total) Contracting Method: Method of Solicitation: Formally Bid: ITB If applicable, basis for exemption: N/A Term of Agreement: May 5, 2010 through May 4, 2011 Option to Renew? Yes 5 years total (May 4, 2015) Approval for purchases as needed for the life of the contract Yes Action Requested: Contract Award Contract Renewal Contract Increase Funding Source: Budget Reserves New Revenue Bonding Form of Contract: Single Purchase Services Personal Services Construction IGA Price Agreement NARRATIVE: The Board is being asked to approve a new contract with A.B. Utility Contractors, Inc. for concrete removal and replacement services. EWEB s Water Construction Services Department requires concrete removal and replacement services to construct, repair and maintain EWEB s Water and Electric infrastructures. In March 2010, staff issued a formal invitation to bid for these services to be provided on an as needed basis. The purpose of the bid was to establish a five-year price agreement for the services and as a result, A.B. Utility Contractors, Inc. was determined to be the lowest responsive, responsible bidder. Unit pricing was established. This price agreement, if approved, will be for one year with an option, at EWEB s discretion, to renew for four additional one-year periods (total contract term: 5 years). The services will be purchased on an as needed basis to meet work requirements. Exact purchase amounts are unknown and no guarantee has been made for an actual amount of required work. Historical procurement data indicates that EWEB requires approximately $100,000 of this type of service per year; therefore, staff estimates the total contract amount to be $500,000 over the potential life of the contract. However, the actual cost will be for services as needed and not on any specific dollar amount. ACTION REQUESTED: Staff requests Board approve a new contract with A.B. Utility Contractors, Inc. for concrete removal and replacement services. Funds for these services were budgeted for 2010 and will be budgeted annually. Revised Page 1

12 SIGNATURES: Project Coordinator: Supervisor: Purchasing Manager: Division Director: General Manager: Board Approval Date: Secretary/Assistant Secretary verification: Revised Page 2

13 EWEB Board Consent Calendar Request For Contract Awards, Renewals, and Increases The Board is being asked to approve a new contract with American Concrete Cutting for asphalt/concrete cutting and core drilling services. Backgrounder (if yes, See backgrounder information ) No Board Meeting Date: May 4, 2010 Project Name/Contract#: Concrete/Asphalt Cutting Project Contact: Todd Simmons Ext Purchasing Contact: Quentin Furrow Ext Contract Amount: Original Contract Amount: $500,000 Additional $ Previously Approved: $ Invoices over last approval: $ Percentage over last approval: % Amount this Request: Resulting Cumulative Total: $500,000 (Approx $100,000 per year) $500,000 (Estimated 5 year total) Contracting Method: Method of Solicitation: Formally Bid: ITB If applicable, basis for exemption: N/A Term of Agreement: May 5, 2010 through May 4, 2011 Option to Renew? Yes 5 years total (May 4, 2015) Approval for purchases as needed for the life of the contract Yes Action Requested: Contract Award Contract Renewal Contract Increase Funding Source: Budget Reserves New Revenue Bonding Form of Contract: Single Purchase Services Personal Services Construction IGA Price Agreement NARRATIVE: The Board is being asked to approve a new contract with American Concrete Cutting for asphalt/concrete cutting and core drilling services. EWEB s Water Construction Services Department requires concrete/asphalt cutting and core drilling services to construct, repair and maintain EWEB s Water and Electric infrastructures. In March 2010, staff issued a formal invitation to bid for these services to be provided on an as needed basis. The purpose of the bid was to establish a five-year price agreement for the services and as a result, American Concrete Cutting was determined to be the lowest responsive, responsible bidder. Unit pricing was established. This price agreement, if approved, will be for one year with an option, at EWEB s discretion, to renew for four additional one-year periods (total contract term: 5 years). The services will be purchased on an as needed basis to meet work requirements. Exact purchase amounts are unknown and no guarantee has been made for an actual amount of required work. Historical procurement data indicates that EWEB requires approximately $100,000 of this type of service per year; therefore, staff estimates the total contract amount to be $500,000 over the potential life of the contract. However, the actual cost will be for services as needed and not on any specific dollar amount. ACTION REQUESTED: Staff requests Board approve a new contract with American Concrete Cutting for asphalt/concrete cutting and core drilling services. Funds for these services were budgeted for 2010 and will be budgeted annually. Revised Page 1

14 SIGNATURES: Project Coordinator: Supervisor: Purchasing Manager: Division Director: General Manager: Board Approval Date: Secretary/Assistant Secretary verification: Revised Page 2

15 EWEB Board Consent Calendar Request For Contract Awards, Renewals, and Increases The Board is being asked to approve a new contract with Wells Fargo Bank, N.A. for trustee and custodian services. Backgrounder (if yes, See backgrounder information ) No Board Meeting Date: May 4, 2010 Project Name/Contract#: Trustee & Custodial Services/ PSC #2056 Project Contact: Cathy Bloom Ext Purchasing Contact: Cheryl Golbek Ext Contract Amount: Original Contract Amount: $226,000 Additional $ Previously Approved: $N/A Invoices over last approval: $N/A Percentage over last approval: 0% Amount this Request: $226,000 Resulting Cumulative Total: $226,000 Contracting Method: Method of Solicitation: Exempt If applicable, basis for exemption: EWEB Rule (1)(k) Term of Agreement: May 5, 2010 through December 31, 2012 Option to Renew? Yes, Renewal up to 5 years total. Approval for purchases as needed for the life of the contract Yes Funding Source: Budget Reserves New Revenue Bonding Form of Contract: Single Purchase Services Personal Services Construction IGA Price Agreement NARRATIVE: The Board is being asked to approve a new contract with Wells Fargo Bank, N.A. for trustee and custodian services. Since October 2003, Wells Fargo has provided EWEB with comprehensive Trustee Services for EWEB s debt issues and custodial services relating to its investment of funds of its cash and reserve accounts. Trustee Services are used for EWEB s Treasury functions, such as bond covenant requirements for debt issues and safekeeping accounts for investment trades. Bond covenants and an accounting pronouncement, GASB 40, Deposit and Risk Disclosure, requires EWEB to contract with a trustee to provide custodial services. This requirement was established to safeguard assets, thereby, reducing the risk of lost funds, by having an institution, in the form of a Trustee, hold those securities in a custodial account. Depending on the debt, services include fiscal, paying and escrow agent services. Rates are fixed and based on type of service required. Debt issues may vary from year-to-year so, the services provided directly relate to those annual requirements. These services are exempt from the Public Contracting requirements (ORS 279A.025(q)(C)), because they cannot practically be established under the competitive contractor selection procedures. Therefore, staff has negotiated a new contract, including transaction fees, with Wells Fargo Bank for the continuation of these services. Annual usage is estimated to be approximately $45,200 per year; $226,000 over the total 5 years. ACTION REQUESTED: Staff requests Board approval of a new contract with Wells Fargo Bank, N.A. for trustee and custodian services. Funds for these services were budgeted for 2010 and will be budgeted annually. Revised Page 1

16 SIGNATURES: Project Coordinator: Supervisor: Jim Origliosso, see below signature as Division Director Purchasing Manager: Division Director: General Manager: Board Approval Date: Secretary/Assistant Secretary verification: Revised Page 2

17 EWEB Board Consent Calendar Request For Contract Awards, Renewals, and Increases The Board is being asked to approve a new price agreement with Wesco Distribution Inc. for the periodic purchase of Molded Rubber Products (as needed to replenish stock). Backgrounder: No Board Meeting Date: 5/4/2010 Project Name/Contract#: Molded Rubber Products Project Contact: Tom Ossowski Ext Purchasing Contact: Cindy McLaren Ext Contract Amount: Original Contract Amount: $ 802,322 Additional $ Previously Approved: $ n/a Invoices over last approval: $ n/a Percentage over last approval: n/a % Amount this Request: $ 802,322 Resulting Cumulative Total: $ 802,322 Action Requested: x Contract Award Contract Renewal Contract Increase Funding Source: x Budget Reserves New Revenue Bonding Contracting Method: Method of Solicitation: If applicable, basis for exemption: Formal Bid Term of Agreement: May 5, 2010 May 4, 2011 Option to Renew? n/a Yes, annually for up to 5 years Approval for purchases as needed for the life of the contract NARRATIVE: The Board is being asked to approve a new price agreement with Wesco Distribution Inc. for the periodic purchase of Molded Rubber Products (as needed to replenish stock). In March 2010, EWEB issued a formal invitation to bid for the periodic purchase of Molded Rubber Products as the utility needs those products for new installations or replacement. These products are used for hooking up distribution cable inside of vaults. Four bids were received and Wesco Distribution Inc. was determined to be the lowest responsive-responsible bidder. The price agreement established fixed unit prices for the first year. Prices are reviewed annually and adjusted, if requested, to compensate for economic escalation (i.e cost of living or cost of materials). Based on past history, Staff estimates that purchases will total approximately $145,200 per year and that the total contract amount will be approximately $802,322 over the total five-year period. (This figure includes an estimated 5% price increase each year.) The actual total dollar amount, however, is unknown and may be more or less than that estimated. Purchases will be based on need and not on any specific annual quantity. The annual cost will be within the amount budgeted for that specific year. If approved, staff will purchase Molded Rubber Products from this supplier as needed over the life of the contract, potentially five years. This contract is for one-year with the option, at EWEB s discretion, to renew for four additional one-year periods. ACTION REQUESTED: Staff requests Board approval of a new price agreement with Wesco Distribution Inc. for the periodic purchase of Molded Rubber Products (as needed to replenish stock). Funds for these purchases were budgeted for 2010 and will be budgeted annually. Revised Page 1 Yes Form of Contract: x Single Purchase Services Personal Services Construction IGA Price Agreement

18 SIGNATURES: Project Coordinator: Supervisor: Purchasing Manager: Division Director: General Manager: Board Approval Date: Secretary/Assistant Secretary verification: Revised Page 2

19 EWEB Board Consent Calendar Request For Contract Awards, Renewals, and Increases The Board is being asked to approve a new contract with Wildish Building Company for construction services for the Walterville Return Fish Channel Passage Improvements. Backgrounder No Board Meeting Date: May 4, 2010 Project or Job Name: Walterville Return Fish Channel Passage Improvements Project Contact: Mark Zinniker Ext Purchasing Contact: Guy Melton Ext Contract Amount: Original Contract Amount: $737,870 Additional $ Previously Approved: $0 Invoices over last approval: $0 Percentage over last approval: 0% Amount this Request: $ 737,870 Resulting Cumulative Total: $ 737,870 Action Requested: Contract Award Contract Renewal Contract Increase Funding Source: Budget Reserves New Revenue Bonding Contracting Method: Method of Solicitation: Invitation to Bid No If applicable, basis for exemption: Not applicable Term of Agreement: May 5, 2009 November 30, 2010 Option to Renew? Approval for purchases as needed for the life of the contract NARRATIVE: No The Board is being asked to approve a new contract with Wildish Building Co. for construction services for the Walterville Return Channel Fish Passage Improvements. In March 2010, staff solicited bids for construction services for improvements to the Walterville return fish channel passage. Two responsive offers were received from Wildish Building Company ($737,870) and Weekly Bros., Inc. ($1,002,150). A Notice of Intent to Award was sent to Wildish Building Company conditioned on Board approval. The Walterville return channel fish channel improvements consist of a new concrete fish entrance structure that will be equipped with a modulating weir for flow control, associated controls for automatic operation, fabricated steel walkways and bulkheads for maintenance operations, and extensive earthwork within the existing channel. The project will require work area isolation, fish salvage, dewatering activities, and a 4-week shutdown of the Walterville Power Plant to facilitate construction. The improvements have been designed to solve salmonids holding problems at the Walterville tailrace barrier by improving flow conditions for fish passage. The design has been reviewed and approved by the National Marine Fisheries Service, US Fish and Wildlife Service, and Oregon Department of Fish and Wildlife. If approved, the contract will be executed and the work will commence shortly thereafter. This project is expected to be completed by November 12, No Form of Contract: Single Purchase Services Personal Services Construction IGA Price Agreement ACTION REQUESTED: Staff is requesting the Board approval of a contract with Wildish Building Company for construction services for the Walterville Return Fish Channel Passage Improvements. Funds for this construction were budgeted for Revised Page 1

20 SIGNATURES: Project Coordinator: Supervisor: Purchasing Manager: Division Director: General Manager: Board Approval Date: Secretary/Assistant Secretary verification: Revised Page 2